For more information contact: House GOP Communications 651-296-5520

SESSION UPDATE

News from Rep. Franson's Desk

Dear Friends –

Hello friends! Hope you are all having a great day. It's been a busy couple of weeks down at the Capitol but listed below is a quick read of what's in the Omnibus bills. We are done with the budget and now it's up to Dayton to sign the bills.

Agriculture:
Minnesota’s agricultural industry is an integral component of our state’s economy. Our approach prioritizes funding to maintain the integrity and safety of the food supply in Minnesota, and minimized reductions to programs and services that benefit farmers.
Protects integrity of Minnesota’s food supply: No reduction in funding for retail food handling and meatpacking inspections.
Promotes agricultural literacy: Provides continued funding and support for agriculture literacy programs, including 4-H, and Future Farmers of America, and grants to industry organizations and groups.
Fulfills state’s commitment to ethanol producer and ends future subsidies: Provides $15 million for the final ethanol producer deficiency payment in FY12. Does not provide or continue state subsidies for ethanol going forward after FY12.

Tax:
After decades of uncontrolled spending growth, we don’t need to raise taxes. A key element of economic recovery is citizens being able to keep their own money and spend it for their own needs in economy. The best way to do that is to let it stay in the hands of the taxpayers. In addition our budget provides tax relief to lower and middle income Minnesotans.
Provides Tax Relief: Reduces the 1st-tier income tax rate from 5.35% to 4.75 percent; Reduces the 2nd-tier from 7.05% to 6.75%.
Promotes Job Creation: Makes the sales tax exemption for capital equipment an upfront exemption – a huge capital benefit for small and emerging businesses; Modifies the R&D tax credit and dedicates withholdings for science and technology; Reduces the state property tax levy on commercial industrial properties
Eliminates Political Contribution Refund program that subsidized political campaigns
Repealed many elements, reformed and clearly defined the Green Acres program.

Transportation:
We put together a fiscally responsible transportation bill focused on preserving current systems and putting the brakes on light rail expansion the state cannot afford to build or operate. It gives Greater Minnesota transit funding that can be used for busses a $1 million increase.
Increases local road funding by $126 million
Increases highway funding to reflect growth in gas and motor vehicle sales tax collections, approximately $120 million
Stops expansion of rail projects in general since we can’t afford to build or operate them.

K-12 Education:
Maintaining education funding is a fiscal priority as we balance the budget. We will also work on policy reforms to improve teacher training and relieve districts of costly mandates during tight budget times. We must provide stable and adequate funding for education while working to ensure the greatest impact for every dollar spent in our schools.
School districts in our area receive per pupil funding increases.

Jobs and Economic Development:
This bill is a responsible and thoughtful approach to balancing the state’s budget. It prioritizes spending to focus on workforce development programs that are needed and actually work to help Minnesotans get back to work and on programs that are delivering outcomes for the investments we are making. The bill also protects the most vulnerable in our housing programs – the mentally ill and family homeless prevention.
Increases competition for grants: Creates and funds Youth Workforce Development Competitive Grant Program. Grant program is a pilot project that if successful can be applied to future pass through grants for business development and adult services.
Funds innovative program to spur job growth and business development: Continues funding for Inventors Congress and Biobusiness Alliance, both spearhead innovation and lay the foundation for the future of Minnesota’s marketplace.
Protects the most vulnerable: No cuts for housing for the mentally ill and family homeless prevention; funds the Challenge Program with enough money to receive the federal match; and made minimal reductions to Minnesota Housing Trust Fund.

Higher Education:
Our Higher Education Finance Bill focuses on students by fully funding programs that help them pay for college – the state grant program – and making no reductions to the work study program. It also creates tuition controls to protect students from unreasonable tuition increases and sets performance benchmarks for the U of M and MnSCU.
It includes no reduction to Postsecondary Child Care Grants; Improves ability to transfer credits within the MnSCU system
Creates Tuition Controls: Protects students from unreasonable tuition increases; places an expectation on college and universities that tuition not increase by more than 5 percent (5% at U of M, 4% at state universities, 2% at state colleges); encourages schools to offer “locked-in” tuition rates to students for their four years
Provides Accountability and Reform: Benchmarks must be met before the systems can receive a portion of their funding

Environment and Natural Resources:
The House Environment Bill sets priorities for accountable and responsible spending that provides long-term benefits for our environment and economy. These are challenging economic times, we expect the state agencies to manage their resources wisely and focus their work on the core priorities of environmental protection and conservation.
Sets and funds priorities: focus on core functions to achieve clean air, water and land
No reduction to flood mitigation work at BWSR or firefighting account at DNR
Redirects some funds to higher priority projects such as $5 million for aquatic invasive species and $1.2 million for chronic wasting disease. It is important to stop the spending on studies and fund programs that actually get work done!


Health and Human Services:
Both the state and the federal government have a long history of denying reality and spending more than taxpayers can afford. Unlike previous legislatures, this bill leaves the status quo behind, leveraging innovation and reform to make our HHS system accountable, responsible and sustainable.
We protected priorities such as seniors, the disabled and the safety net: spares nursing homes from across-the-board cuts; promotes paths to increased independence for disability waiver recipients.
Builds in reforms that creates incentives for high cost care providers to become more efficient while maintaining or improving quality; promotes local control for counties to provide services based on local circumstances

Public Safety and Judiciary:
During tough budget times we have to make core services like courts and public safety a priority. They are basic foundations of government, the things we are constitutionally and morally bound to do.
Judiciary funding: $728 million, $7 million less than current spending.
Public safety funding: $1.2 billion, $58 million less than current spending; $15.9 million reduction from Corrections, with instructions to focus cuts on administration, not prison guards.

State Government:
The State Government Finance Bill implements sweeping reform initiatives designed to reduce costs, improve service delivery, and drive government into the 21st century. Individually and as a package, the reforms offered by House Republicans promote fiscal stability, modernize state services and drive continued innovation.
Provides $102 million in savings for FY 12-13 for the various reforms in the bill
Increases funding for Veteran’s Affairs and Military Affairs
Introduces reform measures to put state on a sustainable course such as a sunset commission, zero-based budgeting principles and pay for performance
Cuts funding to Legislature and Constitutional offices and reduces the days the legislature is in session.

I admit that these bills are not 100% perfect and I also don't agree that the Legislature should be spending 34.2 billion dollars over the next biennium. Minnesota deserves better.

All tyranny needs to gain a foothold is for people of good conscience to remain silent. - Thomas Jefferson

Have a great week,
Mary
P.S. Pass this email on to your friends and tell them to sign up for my email updates at www.house.mn/11B